Should my business go cashless?

Do Australian businesses have to accept cash?

In Australia, no law forces a business to accept cash. The Reserve Bank of Australia (RBA) notes that while banknotes are legal tender, businesses can set their own payment terms. This means a shop, café, or service provider can decide to accept only electronic payments if they wish—so long as it’s clearly communicated to customers before a transaction.

For example, if you display a sign that says “Card payments only” or “No cash accepted”, you are within your rights to refuse cash payments.

Is it illegal to decline cash in Australia?

It isn’t illegal to refuse cash in Australia. However, transparency is key. If a customer reasonably expects to pay with cash and you refuse after they’ve ordered or engaged your service, it could cause disputes or complaints. The best approach is to clearly display your accepted payment methods at the counter, on menus, or in your store signage.

What are the disadvantages of accepting cash?

Cash might feel simple, but it can come with hidden costs and risks:

• Security risks – Keeping cash on-site increases the risk of theft or loss.
• Extra admin – Cash requires manual counting, reconciliation, and trips to the bank.
• Bank fees – Depositing cash can incur banking fees or require minimum deposits.
• Errors and shrinkage – Manual handling can lead to counting mistakes or unrecorded losses.
• Slower checkout – Cash transactions take longer, especially during busy periods.

While some customers still prefer to pay with notes and coins, the operational overhead often outweighs the benefits.

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Is cash better for small businesses?

Some small businesses still prefer cash because it offers immediate liquidity, there are no card processing fees and money is in hand straight away. In markets or local settings, cash can also encourage quick purchases without reliance on technology.

However, cash also creates complexity. It doesn’t integrate easily with accounting software, it’s harder to track, and it can make financial reporting or tax time more stressful. For most small businesses today, the efficiency and traceability of digital payments far outweigh the simplicity of cash.

Should businesses go cashless?

Going cashless makes sense for many small businesses, especially in high-volume, low-margin industries like cafés, food trucks, or retail. Electronic payments are faster, safer, and automatically recorded.

However, before you switch completely, it’s worth considering your customer base. Some people, especially older Australians or those in rural areas, still rely on cash. If you serve a wide demographic, you might consider a transition period or maintaining a small float for those customers.

Will cash be phased out in Australia?

Cash use in Australia is declining sharply. According to the RBA, cash was used in just 13% of consumer payments in 2023, down from nearly 70% in 2007. Many experts believe cash won’t disappear completely, but it will continue to play a smaller role in the economy.

As digital wallets, contactless cards, and real-time payment systems like PayID and Osko become standard, the shift towards a cashless society seems inevitable.

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What are the advantages of going cashless?

• Faster transactions – Tap payments speed up service and reduce queues.
• Less admin – No need to reconcile tills or handle bank deposits.
• Better accuracy – Automatic records make accounting and tax easier.
• Reduced theft risk – No cash on-site means less temptation for theft.
• Improved hygiene – No physical money means fewer germs.
• Integration with software – Payment systems can link directly with accounting tools like Thriday for seamless bookkeeping and tax tracking.

What are the disadvantages of going cashless?

• Processing fees – Card and EFTPOS payments attract small transaction fees.
• Dependence on technology – If systems go down, payments can’t be processed.
• Customer exclusion – Some customers may feel left out or unable to pay.
• Data privacy concerns – Digital transactions can create more digital footprints.

While these are valid concerns, many can be mitigated by choosing reliable payment providers, maintaining backup payment options, and clearly communicating with customers.

Steps to go cashless

If you decide to go cashless, here’s how to make the transition smoothly:

1. Review your customer base – Understand who your customers are and how they pay.
2. Upgrade your payment systems – Choose a reliable EFTPOS or POS system that integrates with your accounting software.
3. Communicate early – Let customers know your plans with signage, social media posts, and on receipts.
4. Set a date – Choose a transition period before going fully cashless.
5. Review fees and pricing – Factor in transaction fees when setting prices.
6. Automate your accounting – Use a platform like Thriday to automatically record transactions, reconcile accounts, and stay compliant with the ATO.

Final thoughts

Going cashless isn’t just a trend, it’s part of a broader shift in how Australians pay for goods and services. While cash still has a place in some businesses, digital payments offer unmatched convenience, safety, and simplicity.

For small business owners, embracing a cashless model can streamline operations, reduce admin time, and make accounting effortless. With the right tools in place — like Thriday — you can manage every transaction automatically, stay compliant, and focus on what matters most: running and growing your business.